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  • Out of State Employees

    From Stuart O. Bronstein@21:1/5 to All on Thu Jul 13 15:08:19 2023
    I have a question about a business with out of state employees. The
    business has no office, assets or other contacts with those other states, either temporarily or permanently.

    My understanding is that in this kind of case, an employer is not required
    to do withholding either for state income tax or or other state charges
    like workers' compensation or unemployment.

    Am I right about that? I have been told that withholding for the other
    states is required.

    Thanks for any insight you can give.


    --
    Stu
    http://DownToEarthLawyer.com

    --
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  • From ira smilovitz@21:1/5 to Stuart O. Bronstein on Thu Jul 13 15:50:04 2023
    On Thursday, July 13, 2023 at 3:11:41 PM UTC-4, Stuart O. Bronstein wrote:
    I have a question about a business with out of state employees. The
    business has no office, assets or other contacts with those other states, either temporarily or permanently.

    My understanding is that in this kind of case, an employer is not required
    to do withholding either for state income tax or or other state charges
    like workers' compensation or unemployment.

    Am I right about that? I have been told that withholding for the other
    states is required.

    Thanks for any insight you can give.


    --
    Stu
    http://DownToEarthLawyer.com

    --

    The question is a legal one (and I am not an attorney) and the answer is dependent on state law. I know that some states will maintain that by having an employee within that state, the employer has established nexus for all relevant purposes.

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Stuart O. Bronstein@21:1/5 to ira smilovitz on Thu Jul 13 17:56:30 2023
    ira smilovitz <ira.smilovitz@gmail.com> wrote:
    Stuart O. Bronstein wrote:

    I have a question about a business with out of state employees. The
    business has no office, assets or other contacts with those other
    states, either temporarily or permanently.

    My understanding is that in this kind of case, an employer is not
    required to do withholding either for state income tax or or other
    state charges like workers' compensation or unemployment.

    Am I right about that? I have been told that withholding for the
    other states is required.

    The question is a legal one (and I am not an attorney) and the answer
    is dependent on state law. I know that some states will maintain that
    by having an employee within that state, the employer has established
    nexus for all relevant purposes.

    Thanks Ira. I am an attorney, and I'm asking because I'm curious about people's experience with this. There is a constitutional prohibition
    against one state imposing laws on citizens of another state if they
    don't purposly do something to bring themselves within the jurisdiction
    of the other state.

    In this case the workers are working in the employer's state, but have
    home addresses in another state. Their payrole company is telling them
    they have to withhold for unemployment and workers' comp in the state of
    the home addresses. That doesn't strike me as particularly legal.


    --
    Stu
    http://DownToEarthLawyer.com

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From ira smilovitz@21:1/5 to Stuart O. Bronstein on Fri Jul 14 14:28:46 2023
    On Thursday, July 13, 2023 at 5:57:05 PM UTC-4, Stuart O. Bronstein wrote:
    ira smilovitz <ira.sm...@gmail.com> wrote:
    Stuart O. Bronstein wrote:

    I have a question about a business with out of state employees. The
    business has no office, assets or other contacts with those other
    states, either temporarily or permanently.

    My understanding is that in this kind of case, an employer is not
    required to do withholding either for state income tax or or other
    state charges like workers' compensation or unemployment.

    Am I right about that? I have been told that withholding for the
    other states is required.

    The question is a legal one (and I am not an attorney) and the answer
    is dependent on state law. I know that some states will maintain that
    by having an employee within that state, the employer has established
    nexus for all relevant purposes.
    Thanks Ira. I am an attorney, and I'm asking because I'm curious about people's experience with this. There is a constitutional prohibition
    against one state imposing laws on citizens of another state if they
    don't purposly do something to bring themselves within the jurisdiction
    of the other state.

    In this case the workers are working in the employer's state, but have
    home addresses in another state. Their payrole company is telling them
    they have to withhold for unemployment and workers' comp in the state of
    the home addresses. That doesn't strike me as particularly legal.
    --
    Stu
    http://DownToEarthLawyer.com

    --

    In this matter, I believe you are correct. In my personal experience with NJ/NY and residents of one state working in the other, the unemployment and disability "taxes" were always based on the employer's location, not the employee's residence.

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)